The value of Poringland leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is below than 80 years
Leasehold properties in Poringland with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Poringland leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her leasehold apartment in Poringland, Samantha commenced the lease extension process as the 80 year mark was swiftly coming. The legal work completed in October 2013. The freeholder’s charges were negotiated to below 700 GBP.
In 2013 we were approached by Dr Ryan Bernard who, having owned a newly refurbished apartment in Poringland in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Poringland with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ran out in 2095. Considering the 70 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including legals.
Dr Louise Martinez owned a basement apartment in Poringland in January 2012. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative flats in Poringland with 100 year plus lease were valued around £246,800. The average amount of ground rent was £60 invoiced monthly. The lease terminated on 22 October 2075. Considering the 50 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including fees.